System and method for electronic deposit of a financial instrument by banking customers from remote locations by use of a digital image

ABSTRACT

A system and method for initiating a deposit transaction, where the depositor is a banking customer located at a remote location, and where the item to be deposited is a financial instrument, such as a paper check from a third party, payable to the depositor. The enabling system features a Remote Customer Terminal (RCT) with certain input devices, connected to a bank system. An image and/or other data of the financial instrument are transmitted from the RCT to the Bank of First Deposit (BOFD) where the data may be processed by conversion to Electronic Funds Transfer (EFT), via Electronic Check Presentment (ECP), or via check reconstruction. The deposit transaction can be accomplished without physical transfer of the financial instrument to or through the bank system. The system and method provide convenience and improved transaction processing speed compared to other deposit transactions of financial instruments.

RELATED APPLICATIONS

This application is a continuation-in-part of U.S. patent applicationSer. No. 09/506,434, titled “System and Method For Electronic Deposit ofThird-Party Checks By Non-Commercial Bank Customers From RemoteLocations,” filed on Feb. 18, 2000, the specification of which is herebyincorporated by reference in its entirety.

FIELD OF THE INVENTION

The invention relates generally to a system and method for initiating adeposit transaction, where the depositor is a banking customer locatedat a remote location, where the item is to be deposited without physicaltransport of the item to a bank and where the item to be deposited is afinancial instrument, e.g. a paper check, from a third party (i.e.,other than the bank customer or the paying bank), payable to thedepositor, where the banking customer has or creates a digital image ofthe financial instrument.

As used herein, a “bank” may be a bank or other financial institution,and a “financial instrument” may be any financial instrument, includingpaper-based financial instruments such as checks or other negotiableinstruments, now known or later developed.

BACKGROUND OF THE INVENTION

Methods and systems for initiating electronic financial transactionsfrom remote locations are increasingly common. Examples are the use ofAutomated Teller Machines (ATMs) to withdraw cash, and the use oftelephonic systems and personal computers to initiate a transfer offunds between banking customer accounts, or to pay bills. Suchtransactions are commonly referred to as Electronic Funds Transfer(EFT).

Two principal advantages of EFT, from the perspective of the bankingcustomer, are convenience and speed. They are convenient to the extentthat they do not require banking customers to physically visit the bankin order to initiate a financial transaction. Electronic transactionsare also completed more quickly than those involving paper instrumentsand/or documents that must be physically routed to different locationsin order to complete the transaction. A significant disadvantage ofpresent EFT systems, however, is that they are not equipped to acceptcertain financial instruments, such as paper checks, as part of thetransaction. Since it is estimated that paper check volume in the UnitedStates exceeds sixty billion annually, this is a significant drawback.

Some approaches have been disclosed for converting paper checks toelectronic transactions. Using an approach commonly known as ElectronicCheck Presentment (ECP), a bank of first deposit (the bank firstreceiving a paper check for deposit, hereinafter BOFD) will capture anelectronic image of the check or otherwise convert the check to anelectronic transaction for processing through a clearing house and thepaying bank. The image of the check and/or check data essentially takethe place in the settlement process of the paper check for the purposesof payment. For a general description of the ECP process, see U.S. Pat.No. 5,237,159. While the ECP method may speed transaction time, itoffers no improvement in convenience for the banking customer who muststill initiate the transaction by physically delivering the paper checkto the bank.

A related approach allows a banking customer to write a paper check forpurchases at the point-of-sale, typically a retail store, where thetransaction is then converted into either an EFT or ECP transaction.Under this method, however, the banking customer is the payor. Noprovision is made for the deposit of checks by a payee.

Existing systems that perform electronic banking transactions are eithernot equipped to handle certain financial instruments such as paperchecks, are configured only for bank-to-bank transactions, or do notaccept third party checks for deposit. The resulting lack ofconvenience, and other drawbacks, limits the utility of such systems forbank customers.

SUMMARY OF THE INVENTION

It is one object of the invention to provide a system and method forallowing banking customers to deposit financial instruments, includingthird-party checks, from remote locations without physicallytransporting the financial instruments to the bank.

It is another object of the invention to provide a system and methodthat would allow banking customers to initiate such deposit transactionsat home, providing convenience and a level of independence for bankingcustomers who are confined to their homes.

It is another object of the invention to provide a method that wouldallow banking customers to deposit financial instruments, such as thirdparty checks, at ATM machines. Most ATMs simply provide a means forholding paper checks until they are collected for processing. Thepresent invention would make ATMs more useful by providing forelectronic deposit of financial instruments, such as third party checks.

It is another object of the invention to provide alternative methods forthe BOFD system to process such transactions. By identifying a systemand method for deposit that is compatible with ECP, EFT andreconstructed check processing, banks will have practical alternativesin the implementation of this new approach. Further, banks can executesuch deposit transactions without having to physically receive and/orprocess the physical financial instrument.

To achieve these and other objects of the invention, a payee woulddeposit a financial instrument, such as a third party paper check, usinga Remote Customer Terminal (RCT) that can communicate with a BOFDsystem. The payee may prepare, or receive from a third party, a digitalimage of the financial instrument that is to be deposited. Softwareand/or hardware accessible at or through the RCT can “recognize” data inor on the digital image of the financial instrument. Such data couldinclude data contained in the MICR line, RTN, account number, amount offinancial instrument, date of financial instrument or any othercharacters present in or on the digital image of the financialinstrument. Recognition can be made of such data, whether inhuman-visible or machine readable form. Alternatively or additionally,the banking customer can input data taken from the financial instrument,or the digital image of the financial instrument, directly into the RCT.In general terms, the RCT may be equipped to “accept” digital images anddata regarding the financial instrument. The digital image of thefinancial instrument and/or data recognized from the financialinstrument or inputted into the RCT by the banking customer istransmitted from the RCT to the BOFD system. The BOFD system can processthe deposit transaction in several different fashions.

In one embodiment of the invention, the RCT is located at home, andcomprises a digital camera, or a personal computer or wireless handhelddevice, such as a Blackberry® or Palm Treo®, having digital imagingcapabilities such as an attached image scanner or a digital camera. Toinitiate the transaction, the banking customer uses an Internet-basedapplication loaded on the RCT to access the BOFD system. A pre-assignedPersonal Identification Number (PIN) or other password or secret,including a biometric, may be required to allow the banking customeraccess to the BOFD system. Either when prompted or prior to accessingthe BOFD system, the banking customer captures the digital image of thefinancial instrument by the scanner or the digital camera and prepares afile storing the digital image. Upon prompting by the BOFD system, thebanking customer forwards the digital image to the BOFD system alongwith the data that was either “recognized” from the digital image of thefinancial instrument or was input into the RCT by the banking customer.Alternatively, the customer may input data regarding the financialinstrument directly into the BOFD system.

The automated system can provide immediate provisional credit from theBOFD system to the banking customer, and forward the digital image ofthe financial instrument and other data to a clearing house in the formof an ECP transaction. Once the transaction has cleared the paying bank,the BOFD system issues a permanent credit to the banking customer.Accordingly, the banking customer has initiated deposit of a financialinstrument from a third party, such as a paper check, from theconvenience of his/her own home using a digital image of the financialinstrument and without having to physically present the financialinstrument to the BOFD system, with the speed of an electronictransaction.

Certain actions can be taken to prevent redeposit of the same financialinstrument. For example, if the banking customer is in possession of thephysical financial instrument, the financial instrument may be marked atthe RCT by a printer using human- or machine-readable ink to preventredeposit. Alternatively, the RCT may further comprise a storage vault,and the financial instrument may be physically “captured” thuspreventing redeposit. Another embodiment comprises checkingidentification information of the financial instrument, such as serialnumber and any other identifying information, against a database to seeif the financial instrument has been previously deposited. If it isdetermined that the financial instrument has been previously deposited,redeposit can be denied by the BOFD system.

The following drawings and descriptions further describe the invention,including several different embodiments of the major system componentsand processes. The construction of such a system, implementation of sucha process, and advantages will be clear to a person skilled in the artof automated financial transactions.

BRIEF DESCRIPTION OF THE DRAWINGS

Purposes and advantages of the exemplary embodiments will be apparent tothose of ordinary skill in the art from the following detaileddescription in conjunction with the appended drawings in which likereference characters are used to indicate like elements, and in which:

FIG. 1 is schematic diagram of the system, according to one embodimentof the invention.

FIG. 2 is a flow diagram from the perspective of a banking customer,according to one embodiment of the invention.

FIG. 3 is a flow diagram from the perspective of the BOFD system,according to one embodiment of the invention.

These and other embodiments and advantages will become apparent from thefollowing detailed description, taken in conjunction with theaccompanying drawings, illustrating by way of example the principles ofthe various exemplary embodiments.

DETAILED DESCRIPTION OF THE INVENTION

As indicated above, the invention is directed to a system and method forthe deposit of financial instruments, such as third party checks, usinga digital image of the financial instrument from remote locations bybanking customers.

Overview of the System

FIG. 1 is schematic diagram of the system, according to one embodimentof the invention. The key components are a Remote Customer Terminal(RCT) 100 that is connected to a Bank of First Deposit (BOFD) system110.

The RCT 100 may be a telephone, digital camera, fax machine, personalcomputer, ATM, cell phone, PDA or any other computer, apparatus,wireless handheld device such as a Blackberry® or Palm Treo® or systemcapable of collecting data and communicating with BOFD system 110. Forinstance, the RCT 100 may comprise a workstation or other device runningthe Microsoft Windows™ NT™, Windows™ 2000, Windows Vista™, Windows XP™,Windows Mobile™, Unix, Linux, Xenix, IBM AIX, Hewlett-Packard UX, NovellNetware™, Sun Microsystems Solaris™, OS/2™, BeOS™, Mach, Apache,OpenStep™, Mac OS X™, GAME BOY™, PXP™ or any other operating system orplatform now known or later developed. RCT 100 may also comprise two ormore such devices.

Additionally, the RCT 100 may comprise certain input devices 101, outputdevices 102, Central Processing Unit (CPU) 103, and machine-readableelectronic memory 104.

The RCT input devices 101 may comprise a keypad, a keyboard, amicrophone, a Magnetic Ink Character Reader (MICR), a Digital ImageScanner (DIS), a digital camera, any other digital imaging capabilitiesnow known or later developed, a bar code scanner, a mouse, a touchscreen, a voice reader, a voice recognizer, a dialogue screen, a menubox, a list, a checkbox, a toggle switch, a pushbutton or any otherdevice that allows a user to receive information regarding the operationof the processing machine as it processes a set of instructions and/orprovide the CPU 103 with information. The information provided to theCPU 103 may be in the form of a command, a selection of data, or someother input, for example.

The RCT output devices 102 may comprise a speaker, a display unit, apaper printer, or any other output device that can communicate a messageto a human or a machine.

The RCT memory 104 may comprise a database that might use any desiredarrangement of files such as a flat file arrangement or a relationaldatabase arrangement, for example. RCT memory 104 may be contained onany of a wide variety of media or medium utilized to hold instructionsand/or data used in the invention and may take on any of a variety ofphysical forms or transmissions. RCT memory 104, for example, may be inthe form of paper, paper transparencies, a compact disk, a DVD, anintegrated circuit, a hard disk, a floppy disk, an optical disk, amagnetic tape, a RAM, a ROM, a PROM, an EPROM, a wire, a cable, a fiber,communications channel, a satellite transmission or other remotetransmission.

Certain instructions may also be stored in RCT memory 104 and executedby the CPU 103, for example, to assist in communication and datacollection functions. For example, optical character recognitionsoftware may be used in conjunction with the DIS or the digital camerato convert machine printed characters on the financial instrument or thedigital image of the financial instrument to electronic text. Likewise,intelligent character recognition software may be used to converthandwritten characters on the financial instrument or on the digitalimage of the financial instrument to electronic text. Additionally, anybrowser, such as Netscape Navigator™, Internet Explorer™ or MozillaFirefox™, may be used for Internet communications.

Software may also be stored in RCT memory 104 and executed by CPU 103that is capable of “recognizing” machine-readable data in or on thedigital image of the financial instrument. Such data could include dataincluded in the MICR line or data that may be included in a financialinstrument in, for example, a bar code.

Alternatively or additionally, the banking customer can input data fromthe financial instrument, or the digital image of the financialinstrument, directly into the RCT 100 using input devices 101 such askeypad, keyboard or microphone.

The digital image of the financial instrument, along with data inputinto the RCT 100 from the financial instrument, can be stored in a filein RCT memory 104 or on other memory now known or later developed.

The BOFD system 110 may comprise a telephone, a cellular phone, afacsimile machine, a personal computer, a mainframe computer, a personaldigital assistant (PDA), a wireless handheld device such as aBlackberry® or Palm Treo® or any other computer, apparatus, or systemcapable of receiving data from the RCT 100, and initiating a deposittransaction. Like RCT 100, BOFD system 110 may comprise a workstationrunning the Microsoft Windows™ NT™, Windows™ 2000, Windows Vista™,Windows XP™, Windows Mobile®, Unix, Linux, Xenix, IBM AIX,Hewlett-Packard UX, Novell Netware™, Sun Microsystems Solaris™, OS/2™,BeOS™, Mach, Apache, OpenStep™, Mac OS X™, GAME BOY™, PXP™ or any otheroperating system or platform now known or later developed. Also like theRCT 100, the BOFD system 110 may comprise input devices 111, outputdevices 112, CPU 113, and electronic memory 114. The BOFD system 110 mayfurther comprise an attended operator terminal with or without display,or it may be fully automated comprising a VRU in conjunction with CTI.

Additionally, the BOFD system 110 is broadly defined to include suchnetwork servers or other devices necessary to perform functions such ascommunication, data collection, and preparation of electronictransactions. Data collection, for example, may be implemented byhosting a World Wide Web site on an Internet server. Further, referenceto singular components, such as CPU 113 and electronic memory 114, isnot intended to be limiting and BOFD system 110 may comprise a pluralityof CPUs 113 and electronic memories 114, whether located in a singlephysical location or located in different physical locations.

The RCT 100 and BOFD system 110 communicate with each other via acommunication link 120. The link may operate through a network, such asby direct dial connection to the Internet over a telephone network. Itmay be accomplished via point-to-point communication, such as with adedicated line or via the Internet, an intranet, a PAN (Personal AreaNetwork), a LAN (Local Area Network), a WAN (Wide Area Network) or a MAN(Metropolitan Area Network), a frame relay connection, an AdvancedIntelligent Network (AIN) connection, a synchronous optical network(SONET) connection, a digital T1, T3 or E1 line, Digital Data Service(DDS) connection, DSL (Digital Subscriber Line) connection, an Ethernetconnection, an ISDN (Integrated Services Digital Network) line, adial-up port such as a V.90, V.34 or V.34bis analog modem connection, acable modem, an ATM (Asynchronous Transfer Mode) connection, or FDDN(Fiber Distributed Data Networks) or CDDI (Copper Distributed DataInterface) connections. Communications link 120 may furthermore be,include or access any one or more of a WAP (Wireless ApplicationProtocol) link, a GPRS (General Packet Radio Service) link, a GSM(Global System for Mobile Communication) link, a CDMA (Code DivisionMultiple Access) or TDMA (Time Division Multiple Access) link such as acellular phone channel, a GPS (Global Positioning System) link, CDPD(cellular digital packet data), a RIM (Research in Motion, Limited)duplex paging type device, a Bluetooth™ radio link, or an IEEE802.11-based radio frequency link. Communications link 120 may yetfurther be, include or access any one or more of an RS-232 serialconnection, an IEEE-1394 (Firewire) connection, an IrDA (infrared) port,a SCSI (Small Computer Serial Interface) connection, a USB (UniversalSerial Bus) connection or other wired or wireless, digital or analoginterface or connection. Any type of communication link that is capableof transmitting data, by wired or wireless methods, between RCT 100 andBOFD system 110 is suitable for use in the invention, whether now knownor later developed.

Communications over communication link 120 may be secure to safeguardagainst theft of transmitted data. For example, communications alongcommunications link 120 may be encrypted using any method of encryptionnow known or later developed, including but not limited to symmetric keyencryption such as DES, IDEA or AES, asymmetric or public keyencryption, checksums, cyclic redundancy checks, message authenticationcodes, digital signatures, or combinations or variations of theforegoing.

Additionally, the BOFD system 110 may be connected to one or more checkclearing systems 130 via a communication link 140. The check clearingsystems may comprise for-profit clearing houses 131, Federal Reservebanks 132, and local paying banks 134. The clearing houses 131 andFederal Reserve banks 132 may in turn have means for communication withnon-local paying banks 133.

Further, the BOFD system 110 may include or be connected via acommunication link 160 to one or more databases 150 that includeinformation on financial instruments that have been previouslydeposited.

As with link 120, links 140 and 160 may be accomplished through anynumber of schemes for networked or point-to-point communications.Communications along links 140 and 160 may also be encrypted as for link120 for security of information that is transmitted along those links.

The next two sections provide a description of a method for depositingfinancial instruments as provided by the invention.

Overview of the Information Flow from the Customer Perspective

FIG. 2 is a diagram illustrating the flow of information from theperspective of a banking customer, according to one embodiment of thepresent invention.

The process begins when the banking customer receives a financialinstrument payable to him/her 200. The financial instrument may be drawnon the banking customer's bank, a local bank, a non-local bank in theUnited States, or a foreign bank. Alternatively, the banking customermay receive a digital image of a financial instrument payable tohim/her.

The banking customer may then “log on” to the BOFD system 110 from a RCT100 using a Personal Identification Number (PIN), password, secretand/or other means of identification 210. Any means of verifying thebanking customer's identification may be used, including biometrics suchas retinal scan, fingerprint, voice recognition, DNA, handprintrecognition or handwriting recognition (alone or in combination), or anyother identification means now known or later developed. The bankingcustomer may then select “deposit” from a menu of transaction options220 as presented by the BOFD system 110.

In step 230, the banking customer may respond to prompts for each itemof data needed to deposit the financial instrument. In one embodiment,the banking customer may enter a predetermined set of data all at once,for example where all data input fields are visible on the displayscreen of the RCT 100. The banking customer may be prompted to supplyadditional information in step 240 if the BOFD system 110 requestsinformation not entered previously by the banking customer.

In another embodiment, either before logging on to the BOFD system 110or during a session initiated by logging in, the banking customer mayprepare a digital image of the financial instrument using DIS or adigital camera, or any other method of preparing a digital image nowknown or later developed. Additionally or alternatively, the bankingcustomer may receive a digital image of the financial instrument fromthe payor. The banking customer may store the digital image of thefinancial instrument in the RCT memory 104.

Additionally, the banking customer may access software stored in the RCTmemory 104 that can “recognize” data in or on the digital image of thefinancial instrument and store that data in the RCT memory 104. Thisdata may be stored in the same file as the digital image of thefinancial instrument, or it may be stored in a different memorylocation. If stored in different locations, the files storing thedigital image and the data may be linked. In another embodiment, inaddition or alternatively, the banking customer may enter data into theRCT memory 104 using RCT input devices 101 such as the keypad, keyboardor microphone for storage. Further, the digital image of the financialinstrument may be stored in RCT memory 104 either before the sessioninitiated by logging on to the BOFD system 110, or during the session.

Data may comprise customer identification, customer account number, nameof payor, name and routing number of payor's bank, the amount of thefinancial instrument, an image of the financial instrument, along withother information.

Upon prompting by the BOFD system 110 during the session, the bankingcustomer may submit the data taken from the financial instrument, alongwith the digital image of the financial instrument, to the BOFD system110 for processing 250, and may receive acknowledgement from the BOFDsystem 110 that the transaction is being processed 260. Alternatively,the banking customer may upload the digital image of the financialinstrument and the data from the financial instrument directly to theBOFD system 110 from other storage or using input devices withoutstoring that digital image and data into RCT memory 104. For example,memory devices such as “thumb” drives, non-persistent memory devices orany other method of storing a digital image and data that can beaccessed for uploading to the BOFD system 110 are suitable.

In another embodiment, two or more devices may comprise the RCT 110. Forexample, the banking customer may prepare a digital image of thefinancial instrument and/or enter data taken from the financialinstrument into a device such as a digital camera, a cell phone or aPDA, transmit that information to a workstation such as a personalcomputer and then log into the BOFD system 110 from the workstation. Inyet another embodiment, the banking customer may prepare a digital imageof the financial instrument with a device such as a digital camera, acell phone or a PDA, transmit the digital image to a workstation such asa personal computer, enter data taken from the financial instrument intoan input device in communication with the workstation and then log intothe BOFD system 110 from the workstation. Any combination of devices andinput devices may comprise the RCT 100.

The banking customer may receive a response 270 indicating, for example,that immediate provisional credit for the deposit of the financialinstrument has been given, that full credit has been awarded, or thatthe transaction request has been denied, according to bank procedures.

If credit was issued, the financial instrument may be subjected tocertain actions 280 in order to prevent re-deposit of the same financialinstrument. One possible action is that the financial instrument ismarked, for example, by human or machine readable ink. Alternatively,the financial instrument may be physically captured by the RCT 100, forexample, via deposit into an ATM vault.

In one embodiment, the banking customer may log onto BOFD system 110 andcheck the status of a deposit transaction. In another embodiment, theBOFD system 110 may notify the banking customer that there is missing orerroneous information or data regarding the financial instrument ordeposit transaction request, or there are outstanding questionsregarding the deposit transaction request, in which case the bankingcustomer may log onto the BOFD system 110 and input missing or erroneousinformation or data or provide answers to outstanding questions. Inanother embodiment, the banking customer may access BOFD system 110 andaccess previously inputted data to check for correctness, to correcterroneous inputted data or to make other alterations to the deposittransaction request. For example, the banking customer may request thatthe deposit be placed in a different account than was originallyrequested, that some of the deposit amount be credited to an outstandingaccount such as a loan or a credit account or that some of the depositamount be placed in a stored value account.

Overview of the Information Flow from the Bank Perspective

FIG. 3 is a diagram illustrating the flow of information from theperspective of the BOFD system, according to one embodiment of theinvention.

The process may begin with a logon request 300 from the bankingcustomer. A security function 305 may terminate the process for anyunauthorized user 310. Once the banking customer has been authorized toaccess the BOFD system 110, the authorized user may be promoted to adata collection step, where data regarding the banking customer and thefinancial instrument is received 315, and an acknowledgement of receiptis sent to the customer 320.

The BOFD system 110 may review the identity of the paying bank 325. Ifthe BOFD is the paying bank, the BOFD system 110 may issue immediatefull credit to the account of the payee banking customer 330. Otherwise,the BOFD system 110 may issue “provisional” credit to the bankingcustomer 335. Regardless of the type of credit issued, the BOFD system110 may initiate certain actions 340 to prevent redeposit of the samefinancial instrument (see discussion of step 280 above). This may endthe interactive session with the banking customer.

Next, the BOFD system 110 may make a decision concerning the method for“clearing” the financial instrument through another bank 345. If thetransaction will be converted to an Electronic Funds Transfer (EFT), theBOFD system 110 may have to obtain a payor authorization 350 to supportpreparation of the EFT transaction 355 using the financial instrumentdata that was transmitted from the RCT 100 to the BOFD system 110.Alternatively, the BOFD system 110 may format the transaction forElectronic Check Presentment (ECP) 360 using the financial instrumentdata that was transmitted from the RCT 100 to the BOFD system 110,according to certain pre-established agreements with the paying bank.If, however, the BOFD system 110 does not have either the payor'sauthorization for an EFT, or an agreement with the paying bank for ECP,then the BOFD may print a reconstructed check 365 using the financialinstrument data that was transmitted from the RCT 100 to the BOFD system110. In any of these alternatives, the deposit of the financialinstrument can be “cleared” without physical receipt of the financialinstrument by the BOFD system 110.

In the case of “clearing” using a reconstructed check 370, the clearingprocess 375 is the traditional method for physically routing a paperfinancial instrument to the paying bank for payment. In an EFT or ECPtransaction, the clearing process 375 may be accomplished by automatedsystems. The BOFD system 110 may submit the electronic transactionsindividually, or in batch. The clearing process 375 may involve datatransfer directly to a local paying bank, or it may involve transfer ofdata to a clearing house or Federal Reserve bank for ultimate credit bythe paying bank.

The paying bank may issue credit for the financial instrument 380. Ifcredit is given, the BOFD system 110 may change the banking customer'scredit from “provisional” to “full” 385. If however, the paying bankfails to pay the financial instrument, the BOFD system 110 may retractthe “provisional” credit issued earlier 390.

The specification and examples provided above should be consideredexemplary only. It will be evident that various modifications andchanges may be made thereto, and additional embodiments may beimplemented, without departing from the broader scope of the disclosure.The specification and drawings are accordingly to be regarded in anillustrative rather than restrictive sense.

What is claimed is:
 1. A system for depositing value associated with afinancial instrument into a bank account of a banking customer payeecomprising: a customer terminal, located remote from a bank, thecustomer terminal comprising, a cell phone, a wireless handheld device,a personal digital assistant, or any combination thereof, the customerterminal further comprising at least an electronic processor and digitalimaging capabilities; an automated banking system comprising anelectronic processor and connected to the customer terminal via acommunication link; and a check clearing system comprising an electronicprocessor, the check clearing system connected to the automated bankingsystem via a communication link, the check clearing system being locatedremote from the automated banking system, wherein the automated bankingsystem is configured such that information from the financial instrumentis received from the customer terminal, the information originating froma digital image of the financial instrument, the digital image havingbeen electronically received by the banking customer payee from adigital camera interfaced with the customer terminal as part of thedigital imaging capabilities and the digital image is directly sent tothe automated banking system without requiring the banking customerpayee to produce a physical copy of the digital image and theinformation is used to determine whether the automated banking system isassociated with a paying bank of the financial instrument, wherein theinformation comprises a routing number, an account number, a datewritten, and an amount of the financial instrument, as well as thedigital image of the financial instrument, and wherein the automatedbanking system and check clearing system are configured to effectuatedeposit of the value of the financial instrument into the bank accountof the banking customer payee without physical receipt of the financialinstrument by the automated banking system.
 2. The system of claim 1,wherein the remote customer terminal further comprises one or more of akeypad, a keyboard, a microphone, a magnetic ink character reader, adigital image scanner, or a bar code scanner.
 3. The system of claim 2,wherein the remote customer terminal further comprises opticalrecognition software configured to convert machine printed characters toelectronic text or an intelligent character recognition configured toconvert handwritten characters to electronic text.
 4. The system ofclaim 1, wherein the remote customer terminal further comprises aprinter configured to print a receipt or to mark the financialinstrument using human readable ink or machine readable ink.
 5. Thesystem of claim 1, wherein the banking customer account comprises ademand deposit account.
 6. The system of claim 1, wherein the automatedbanking system comprises a telephone, a cellular phone, a facsimilemachine, a personal computer, a mainframe computer, a wireless handhelddevice, a personal digital assistant or any combination thereof.
 7. Thesystem of claim 1, wherein the financial instrument comprises anegotiable instrument.
 8. The system of claim 7, wherein the financialinstrument comprises a check.
 9. A computerized method for a bankingcustomer to deposit a value of a financial instrument into a bankaccount from a location that is remotely situated with respect to abank, comprising: logging the banking customer onto an automatedelectronic banking system through a customer terminal remotely locatedwith respect to the bank and the automated electronic banking system,wherein the customer terminal comprises a cell phone, a wirelesshandheld device, a personal digital assistant, or any combinationthereof, the customer terminal further comprising at least an electronicprocessor and digital imaging capabilities; receiving a request by theautomated electronic banking system from the banking customer to depositthe value of the financial instrument that is made payable to thebanking customer; receiving, by the automated electronic banking system,a digital image of the financial instrument from the customer terminal,the digital image having been electronically received by the bankingcustomer from a digital camera interfaced with the customer terminal aspart of the digital imaging capabilities and the digital image isdirectly sent to the automated banking system without requiring thebanking customer to produce a physical copy of the digital image;receiving, by the automated electronic banking system, transaction datatransmitted by the banking customer and determining whether theautomated electronic banking system is associated with a paying bank ofthe financial instrument based at least in part on the transaction data,wherein the transaction data comprises a routing number, an accountnumber, a date written and an amount of the financial instrument;depositing, by the automated electronic banking system, the value of thefinancial instrument into a bank account represented by the routingnumber and the account number without physical receipt of the financialinstrument by the automated electronic banking system; and transmittingby the automated electronic banking system to the banking customer aresult of the transaction for the financial instrument.
 10. The methodof claim 9, wherein the result of the transaction comprises a credit tothe banking customer's account, a provisional credit to the bankingcustomer payee's account, or a denial of the transaction.
 11. The methodof claim 9, wherein depositing comprises electronic funds transfer,electronic check presentment or printing a reconstructed check, andphysically routing the reconstructed check to the paying bank forpayment.
 12. The method of claim 11, wherein the reconstructed check isprinted from the digital image of the financial instrument beingdeposited by the banking customer.
 13. The method of claim 9, furthercomprising subjecting the financial instrument to one or more actions toprevent redeposit of the financial instrument.
 14. The method of claim13, wherein the one or more actions comprise marking the financialinstrument by human or machine readable ink, making an inquiry to adatabase whether the financial instrument has previously been depositedbefore receipt of the present deposit request, or combinations thereof.15. The method of claim 9, wherein the bank account comprises a demanddeposit account.
 16. The method of claim 9, wherein the automatedelectronic banking system comprises a telephone, a cellular phone, afacsimile machine, a personal computer, a mainframe computer, a wirelesshandheld device, a wireless handheld device, a personal digitalassistant, or any combination thereof.
 17. The method of claim 9,wherein the financial instrument comprises a plurality of financialinstruments payable to a plurality of banking customers.
 18. The methodof claim 9, wherein the financial instrument comprises a negotiableinstrument.
 19. The method of claim 18, wherein the financial instrumentcomprises a check.
 20. A computerized method for a banking customer todeposit a value of a financial instrument from a location that is remotefrom a bank, comprising: logging onto an automated electronic bankingsystem from a customer terminal located remote from the bank, whereinthe customer terminal comprises a cell phone, a wireless handhelddevice, a personal digital assistant, or any combination thereof, thecustomer terminal further comprising at least an electronic processorand digital imaging capabilities; transmitting to the automatedelectronic banking system a request for authorization to make atransaction; receiving authorization to access the automated electronicbanking system; transmitting a digital image of the financialinstrument, the digital image having been electronically received by thebanking customer from a digital camera interfaced with the customerterminal as part of the digital imaging capabilities and the digitalimage is directly sent to the automated banking system without requiringthe banking customer to produce a physical copy of the digital image,and transaction data to the automated electronic banking system anddetermining whether the automated electronic banking system isassociated with a paying bank of the financial instrument based at leastin part on the transaction data, wherein the transaction data comprisesa routing number, an account number, a date written and an amount of thefinancial instrument; and receiving confirmation that the value of thefinancial instrument has been deposited into the account of the bankingcustomer by the automated electronic banking system without physicalreceipt of the financial instrument by the automated electronic bankingsystem.
 21. The method of claim 20, wherein the value of the financialinstrument is credited to the banking customer's account, provisionallycredited to the banking customer payee's account, or the deposit requestis denied.
 22. The method of claim 20, wherein the value of thefinancial instrument is deposited by the automated electronic bankingsystem by electronic funds transfer, electronic check presentment orprinting of a reconstructed check and physically routing thereconstructed check to the paying bank for payment.
 23. The method ofclaim 22, wherein the reconstructed check is printed from the digitalimage of the financial instrument being deposited by the bankingcustomer.
 24. The method of claim 20, further comprising subjecting thefinancial instrument to one or more actions to prevent redeposit of thefinancial instrument.
 25. The method of claim 24, wherein the one ormore actions comprise marking the financial instrument by human ormachine readable ink, making an inquiry by the automated electronicbanking system to a database whether the financial instrument haspreviously been deposited before receipt of the present deposit request,or combinations thereof.
 26. The method of claim 20, wherein the accountcomprises a demand deposit account.
 27. The method of claim 20, whereinthe automated electronic banking system comprises a telephone, acellular phone, a facsimile machine, a personal computer, a mainframecomputer, a wireless handheld device, a personal digital assistant, awireless handheld device, or combinations thereof.
 28. The method ofclaim 20, wherein the financial instrument comprises a plurality offinancial instruments.
 29. The method of claim 20, wherein the customerterminal further comprises one or more input devices and output devices,a processing unit, a memory device, and a communications link to theautomated electronic banking system.
 30. The method of claim 29, whereinthe one or more input devices comprise a keypad, a keyboard, amicrophone, a magnetic ink character reader, a digital image scanner, abar code scanner, or any combination thereof.
 31. The method of claim20, wherein the customer terminal digital imaging capabilities compriseoptical recognition software configured to convert machine printedcharacters to electronic text and an intelligent character recognitionsoftware configured to convert handwritten characters to electronictext.
 32. The method of claim 20, further comprising entering thetransaction data into the customer terminal through one or more inputdevices.
 33. The method of claim 20, wherein at least part of thetransaction data comprises machine readable data on the financialinstrument.
 34. The method of claim 20, wherein at least part of thetransaction data is stored in a memory device associated with thecustomer terminal.
 35. The method of claim 20, wherein the financialinstrument comprises a negotiable instrument.
 36. The method of claim35, wherein the financial instrument comprises a check.